Should you buy BlackBerry after a sudden increase in revenue?

BlackBerry (BB) shares are moving, up more than 12% so far in Friday's session – up more than 16% at one point.

What is running the old smartphone maker so high in the day? Overestimation of profits and incomes helps the cause.

Analysts expected earnings per share in the order of $ 207.7 million for the second quarter of BlackBerry. However, the company recorded a profit of 4 cents per share on a turnover of $ 214 million, while reiterating its annual outlook.

The stock opened higher during the day, near $ 10.43, but quickly gained momentum. In the first 15 minutes of Friday's session, the shares had already climbed to $ 11. But the train has not slowed down much, with equities ending up at $ 12.

The question now is, is it too late to ship on the BlackBerry Express?

Time to buy BlackBerry shares?

Bears will have a lot to do. For beginners, while revenues have exceeded expectations, overall sales have actually cast 10.1% year-on-year. They will note that if BB had a non-GAAP profit of 4 cents per share, he also had a GAAP loss per share of 4 cents. Investors may also note that software and services revenues increased only 1% year-over-year to $ 197 million.

But it does not stop the stock and unless a big decline at the end of the period, BlackBerry shares turn into a big deal.

With Friday's explosive move, BlackBerry's shares surged on 100-day and 200-day moving averages. It has also surpassed a significant downtrend in resistance, which weighs heavily on BlackBerry since January.

Ironically, the 50% retracement mark between the January high and the August low is $ 12, where BlackBerry touched Friday and quickly retreated. However, considering the big rally of the day, it is not surprising to see a little return of the shares. Long-term traders will likely require BlackBerry shares to comment on the 200-day and / or downside resistance in order to justify a long position.

So where to go from here?

If investors evaluate a position in BlackBerry, they should focus on some positives. For example, while the bears are right to point out that software and services revenues increased by only 1%, billings for the quarter actually increased by two digits. In addition, more than 80% of these revenues are recurring, which means they are not one-time sales for BlackBerry. As this segment grows, it should continue to generate more revenue.

Recurring revenue is a powerful business model, for example for cloud computing companies such as Adobe (ADBE) and Salesforce (CRM).

BlackBerry Technology Solutions is another engine of the company, which has achieved record sales for the quarter. BlackBerry's work in the automotive market has helped elevate this business, which TheStreet spoke at this year's Detroit Auto Show.

Although it took a few quarters to feel the impact, it is clear that these early reports on BlackBerry could prove to be a bigger driver in the future, especially as the connected and autonomous vehicles are starting to play a bigger role.

Finally, BlackBerry expects software and services revenues to increase by 8% to 10% over the year, much better than the 1% growth recorded in the second quarter. Management expects double-digit billings for the segment, as well as for the quarter, and expects to be non-GAAP profitable and positive free cash flow for the year, before accounting for restructuring costs.

Not a perfect quarter, but it surely means that BlackBerry is improving. It sounds like a relief reaction from investors.

Do you want to buy shares for a discount of 10% or more? You can use some so-called "closed" mutual funds – an often overlooked investment class. Click here to sign up for a free online video in which Robert Powell, retirement expert at TheStreet, and a panel of stars will know everything.